‘Extraordinary’ growth in US shale oil could soon force OPEC to take action, IEA says

Written by Sam Meredith at CNBC

“U.S. producers are enjoying a second wave of growth so extraordinary that in 2018 their increase in liquids production could equal global demand growth,” the IEA said in its closely-watched report published Tuesday.

In November 2014, the so-called U.S. shale revolution prompted OPEC to announce a new strategy geared towards improving its market share.

Market conditions in early 2018 seem to be reminiscent of that first wave of U.S. shale growth, prompting the IEA to warn history could be repeating itself.

The relentless rise of U.S. shale growth could soon spark another dramatic change of policy from leading oil producers, according to the latest monthly report from the International Energy Agency (IEA).

“U.S. producers are enjoying a second wave of growth so extraordinary that in 2018 their increase in liquids production could equal global demand growth,” the IEA said in its closely-watched report published Tuesday.

“This is a sobering thought for other producers currently sitting on shut-in production capacity and facing a renewed challenge to their market share,” the Paris-based organization added.